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QUESTION
To raise capital, corporate officers have two basic sources of funding from which to choose: (1) debt (i., issue bonds, take out a loan) or (2)...
To raise capital, corporate officers have two basic sources of funding from which to choose: (1) debt (i.e., issue bonds, take out a loan) or (2) equity (i.e., issue more stock). What are the trade-offs between these two very different sources of capital? Consider tax and nontax factors.
